India-Oman pact holds promises for farms, factories and small businesses, Pg13

Key Highlights:

• The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on June 1, aiming to boost economic ties and create jobs.
• Oman will grant 100% duty-free market access to 98% of Indian tariff lines, covering 99.28% of exports.
• Indian goods facing a 5% import duty in Oman, worth about $3.64 billion in exports, will become more competitive.
• The agreement is expected to increase exports in sectors like textiles, leather, gems, and jewellery, potentially creating numerous jobs across India.
• Indian medicines approved by international regulators will receive automatic marketing authorization in Oman within 90 days.
• Oman's marine product imports were about $119 million between 2022 and 2024, with India accounting for only $7.75 million, indicating growth potential.

Detailed Insights:

• The CEPA aims to diversify markets for Indian exporters, reducing dependence on traditional destinations facing economic challenges and trade barriers.
• Sectors dominated by MSMEs, such as iron and steel, textiles, leather, auto components, and industrial equipment, are expected to receive large international orders, boosting production and investment.
• The trade pact benefits labor-intensive sectors like textiles, apparel, leather & footwear, food processing, marine products, gems and jewellery, and select engineering segments, which are major employers in India.
• Increased textiles exports to Oman will boost production and create jobs across major clusters such as Tirupur, Surat, Ludhiana, Panipat, Coimbatore, Karur, Bhadohi, Moradabad, Jaipur, and Ahmedabad.
• The agreement provides for acceptance and recognition of India’s National Programme for Organic Production (NPOP) certification, which will give opportunities to Indian farmers to sell organic output to Oman.
• Oman has undertaken commercially meaningful commitments in sectors of major export interest to India, including professional services, computer and IT services, education, healthcare, tourism, research and development, and environmental services.
• Oman has agreed to enhanced mobility commitments for Indian professionals and workers, including increased stay durations for intra-corporate transferees and contractual service suppliers.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A trade agreement between two countries to reduce or eliminate tariffs and other trade barriers.
• MSMEs: Micro, Small, and Medium Enterprises, which are important for economic growth and employment.
• Tariff Lines: Specific categories of products that are subject to tariffs or duties.
• National Programme for Organic Production (NPOP): A certification program for organic products in India, ensuring quality and standards.